Chapter 9
Refer to Figure 9-2. The size of the tariff on carnations is _____________.
$2 per dozen
Refer to Figure 9-1. Consumer surplus in Jamaica without trade is _____________.
$2,250
Refer to Figure 9-2. The amount of deadweight loss caused by the tariff equals ________.
$200
Refer to Figure 9-1. Without trade, consumer surplus is _______________.
$245
Refer to Figure 9-2. The amount of revenue collected by the government from the tariff is ______________.
$400
Refer to Figure 9-1. With free trade, producer surplus is ________________.
$472.50
Refer to Figure 9-1. The change in total surplus in Jamaica because of trade is ________________.
$625, and this is an increase in total surplus
Refer to Figure 9-1. With free trade, consumer surplus is _____________.
$80
Refer to Figure 9-1. As a result of trade, total surplus increases by ____________.
$97.50
Refer to Figure 9-2. As a result of the tariff, there is a deadweight loss that amounts to _____________.
D + F
Refer to Figure 9-2. The amount of government revenue created by the tariff is _________.
E
Refer to Figure 9-2. With trade and without a tariff, the price and domestic quantity demanded are _______________.
P.1 and Q.4
When a country allows trade and becomes an importer of a good, ___________________.
consumer surplus increases and producer surplus decreases
A tax placed on a good _________________.
creates a burden that is usually borne entirely by the sellers of the good
Refer to Figure 9-2. The imposition of a tariff on carnations _______________.
decreases the number of carnations imported by 200
Refer to Figure 9-1. With free trade, this country will ______________.
export 65 baskets
Refer to Figure 9-2. When a tariff is imposed in the market, domestic producers ______________.
gain by $300
A country has a comparative advantage in a product if the world price is ____________________.
higher than that country's domestic price without trade
Figure 9-1. The domestic country is Jamaica. Refer to Figure 9-1. With trade, Jamaica ___________.
imports 250 calculators
Refer to Figure 9-2. When the tariff is imposed, domestic consumers ____________.
lose by $900
A tariff is a _____________.
tax on an imported good
When a country allows international trade and becomes an importer of a good, ________________________.
the gains of the winners exceed the losses of the losers
When a nation first begins to trade with other countries and the nation becomes an importer of corn, ___________________________.
the nation's consumers of corn become better off and the nation's producers of corn become worse off
Trade enhances the economic well-being of a nation in the sense that ____________________.
trade results in an increase in total surplus
Suppose Haiti has an absolute advantage over other countries in producing oranges, but other countries have a comparative advantage over Haiti in producing oranges. If trade in oranges is allowed, Haiti ________________.
will import oranges